MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for March 31st:

Updated at 5:00 PM ET 

HEADLINES:

— Jet Fuel Basis in Chicago Records All-Time High

— API: Crude Stocks Up 10.3M Bbl, Rise 5th Week in Row

— PNW, SF ULSD Basis Climb on Tight Supply

— IATA: U.S. Feb. Passengers Up 1.5% Amid Fuel Price Hike

— EIA: U.S. Diesel Prices Up 8th Consecutive Week

— CB: U.S. Consumer Confidence Edges Higher in March

— EIA: U.S. Retail Gasoline Climbs 2.9cts on Week

NEWS:

Jet Fuel Basis in Chicago Records All-Time High

Basis for jet fuel in the Chicago spot market surged by 45cts to a 90cts premium to April ULSD futures on the New York Mercantile Exchange on Tuesday (3/31), doubling from the prior day.

The premium widened sharply in the final trading session ahead of the April contract’s expiry and the roll into May, marking an all-time high and the steepest increase since the Iran war started on February 27. The hike was supported also by tightening supply and firm demand fundamentals.

API: Crude Stocks Up 10.3M Bbl, Rise 5th Week in Row

The American Petroleum Institute (API) has cited a fifth consecutive weekly build in commercial crude oil stocks in its reading for the week ended March 27, energy market participants with access to the data told DTN on Tuesday (3/31).

For the week in review, API reported that commercial crude oil stocks rose by 10.3 million bbl, according to the traders who saw the data. That extended a string of prior builds that included increases of 2.3 million bbl, 6.556 million bbl, 5.6 million bbl and 11.4 million bbl over four prior weeks.

At the Cushing, Oklahoma delivery point for NYMEX WTI futures, crude inventories climbed by 800,000 bbl last week, according to the data.

Gasoline inventories fell by 3.2 million bbl, following a 500,000 bbl build reported the previous week.

Distillate fuel supply slid by 1 million bbl after an increase of 1.4 million bbl in the prior reporting period.

PNW, SF ULSD Basis Climb on Tight Supply

Pacific Northwest ultra-low sulfur (ULSD) basis surged by 10cts on Tuesday (3/31) to a 45.5cts premium over May NYMEX ULSD  futures contract, hitting a seven month high on firm buying interest amid supply tightness.

Bids for PNW ULSD basis were heard in the market at a 45ct premium, with no trades confirmed at that level. The assessment was the highest since September 10  when it was at 44.5cts premium over front-month NYMEX ULSD, according to DTN data.

The move was driven by firm demand, with the basis pegged at a 35.5cts premium to May futures contract in the previous trading session on Monday (3/30).

San Francisco ULSD basis also strengthened sharply, climbing by 30cts to a 75ct premium to May ULSD futures. The market was last assessed at a 45ct premium in the prior session on Monday (3/30), reflecting rapidly tightening supply conditions across the West Coast.

Refinery closures are contributing to the tightness in the market, following the shutdown of Valero’s 145,000 bpd Benicia, California, refinery in late 2005 and the upcoming closure of 139,000 bpd Phillipps 66 Wilmington refinery in April. 

IATA: U.S. Feb. Passengers Up 1.5% Amid Fuel Price Hike

Domestic air passenger demand in the United States grew 1.5% year-on-year in February despite higher fuel and ticket costs, the International Air Transport Association (IATA) reported Tuesday (3/31).

Carrier capacity in the United States also increased by 0.3% year-on-year in February, while the load factor reached 79.6% during the month, IATA stated.

The broader North American passenger market grew 2.8% year-on-year last month while the global market expanded by 6.1%.

The 1.5% growth in the U.S. domestic passenger volume followed a 0.7% year-on-year contraction for the same seen in January.

That suggested resilience for the U.S. market as the IATA noted jet fuel prices rose sharply through February despite tight capacity and thin margins driven by ongoing conflict in the Middle East.

Higher fuel prices also pushed air fares up and forced airlines to adjust capacity deployment for traffic traveling through the Middle East or where fuel supply was an issue, IATA said.

EIA: U.S. Diesel Prices Up 8th Consecutive Week

The U.S. Energy Information Administration reported Tuesday (3/31) that retail diesel prices rose for an eighth consecutive week, climbing 2.6 cents during the week ended March 30 to average $5.401 gallon.

The national average is up $1.809 compared with the same time last year. Retail prices continue to be pushed higher across several regions as global distillate markets remain tight amid ongoing geopolitical risks.

East Coast diesel prices rose 5.5cts to $5.535 gallon. Compared with the same time last year, this PADD 1 region showed a $1.840 gallon increase.

New England diesel prices rose 6.6cts to $5.825 gallon. This PADD 1A region climbed $1.842 versus the same period last year.

The Central Atlantic witnessed a 20.5cts rise on the week. Prices in the PADD 1B region averaged $5.834 gallon, climbing $1.965 compared with the previous year.

Diesel prices in the Lower Atlantic averaged $5.394 gallon. This PADD 1C region reflects a 0.1ct decrease on the week and $1.793 gallon rise from the same time last year.

In the Midwest, diesel prices fell 5.5cts on the week. The PADD 2 region averaged $5.105 gallon, which was $1.586 gallon higher than levels seen a year earlier.

On the Gulf Coast, diesel dropped 2.9cts on the week to $5.105 gallon. Compared with the prior year, prices in PADD 3 were up $1.823 gallon.

Rocky Mountain diesel saw a 9.6cts increase on the week to $5.270 gallon. The PADD 4 region posted a $1.798 gallon increase versus the same time last year.

West Coast diesel prices rose 28.6cts on the week to average $6.596 gallon. Compared with the previous year, the PADD 5 region advanced by $2.337 gallon.

West Coast less California diesel climbed 23.0cts on a weekly basis to $6.056 gallon. This represented a $2.245 gallon increase from the same time last year.

California diesel itself rose 34.9cts on the week to $7.219 gallon. Prices in the state remain the highest in the nation, sitting $2.443 gallon above levels seen at the same time last year.

CB: U.S. Consumer Confidence Edges Higher in March

U.S. consumer confidence edged higher in March as an improved assessment of current conditions offset a slight decline in future expectations, the Conference Board said Tuesday (3/31).

The Conference Board reported that its headline confidence index rose 0.8 points to 91.8 this month. This was above the market expectation of 87.5.  The index for February was revised slightly to 91.0, according to the report. The 

“Consumer confidence ticked up again in March, as a modest improvement in consumers’ views of current conditions outweighed a slight downshift in expectations,” Dana M. Peterson, chief economist at the Conference Board, said in a news release. “Three of five components of the Index firmed in March, and overall confidence improved modestly for a second month.”

The confidence index is a gauge of the household optimism that fuels roughly 70% of the U.S. economy through personal spending and is closely watched by market analysts.

Consumers’ assessment of their current economic situation — the present situation index — rose 4.6 points to 123.3 in March. The expectations index, which gauges the short-term outlook, declined 1.7 points to 70.9, remaining below the 80-point threshold often associated with upcoming recession.

The Conference Board added that write-in responses highlighted that surging costs from tariffs and the war in Iran remained primary sources of economic stress. Peterson also noted that while trade mentions decreased, comments regarding oil, gas, and conflict spiked during the survey period.

The U.S. dollar index slid 0.513 points to 99.84, following the release of the Conference Board data.

EIA: U.S. Retail Gasoline Climbs 2.9cts on Week

The U.S. average retail price for regular gasoline climbed by 2.9cts to $3.990 gallon from $3.961 gallon in the week ending March 30, data from the U.S. Energy Information Administration showed Tuesday (3/31).

The national average stood 82.8cts higher than last year, according to the agency’s weekly update on fuel pricing.
East Coast (PADD 1) gasoline prices went up by 2.9cts to $3.814 gallon, standing 82.2cts higher than last year.
Within the East Coast, New England (PADD 1A) gasoline prices grew by 6.3cts to $3.790 gallon in the reference week, while Central Atlantic (PADD 1B) prices were higher by 4.3cts to $3.898 gallon in the profiled week.
Lower Atlantic (PADD 1C) gasoline prices climbed by 1.2cts to $3.768 gallon in the week ending March 30. Midwest (PADD 2) gasoline prices increased by 2.5cts to $3.709 gallon during the same period.
Prices for the same product at the Gulf Coast (PADD 3) fell by 1.4cts to $3.590 gallon from $3.604 gallon. Rocky Mountain (PADD 4) gasoline prices spiked by 6.7cts to $3.917 gallon in the profiled week.
West Coast (PADD 5) gasoline prices rose by 7.2cts to $5.334 gallon. Gasoline prices on the West Coast less California grew by 7.8cts to $4.875 gallon, with prices in both regions remaining more than $1.13 higher than last year.